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The current holding pattern will continue for the medium-term given there is oversupply on the back of Fukushima. On a positive note, the uranium price remains steady, if not spectacular, unlike other commodities that have experienced significant recent price declines such as iron ore and copper. The uranium price is underpinned by strong long-term fundamentals given significant new build in China. However, uranium companies are not and would not expect to be immune to the present reality of the mining cycle with a focus on reduced capex, project deferrals, operational efficiency and some liquidity concerns.

“My view is that uranium will break out of its holding pattern when a number of events combine from Japanese restarts, supply disruption and a return to long-term contracting."